HBM Holdings Limited (HKG:2142) Stock Catapults 58% Though Its Price And Business Still Lag The Industry
HBM Holdings Limited (HKG:2142) shareholders would be excited to see that the share price has had a great month, posting a 58% gain and recovering from prior weakness. Unfortunately, despite the strong performance over the last month, the full year gain of 3.9% isn’t as attractive.
In spite of the firm bounce in price, HBM Holdings may still look like a strong buying opportunity at present with its price-to-sales (or “P/S”) ratio of 2.4x, considering almost half of all companies in the Biotechs industry in Hong Kong have P/S ratios greater than 10.7x and even P/S higher than 41x aren’t out of the ordinary. Although, it’s not wise to just take the P/S at face value as there may be an explanation why it’s so limited.
